Glentel Inc. 4th quarter net income increases 48%, with annual net income of $10.6 million ($1.01 per share)



    BURNABY, BC, March 12 /CNW/ - Glentel Inc. today reported its results for
the 4th quarter and the year ended December 31, 2007.
    Operating income before interest and taxes for the 4th quarter ended
December 31, 2007 increased 73% to $8,007,000, compared to $4,637,000 in the
4th quarter of 2006. Net income increased 48% to $4,798,000, and earnings per
share increased 44% to $0.46 per share, compared to $3,246,000, $0.32 per
share, for the same quarter last year.
    Sales for the 4th quarter ended December 31, 2007 increased to
$68,918,000, compared to $55,062,000 in 2006. Growth in sales was due to a 28%
increase in sales in the Retail Division and a 14% increase in sales in the
Business Division. During this period Glentel's Retail Division opened 22 new
retail stores, resulting in a 33% growth in number of stores operating at
December 31, 2007 compared to 2006.
    The Retail Division sales of mobile phone products and services grew to
$57,405,000 for the 4th quarter ended December 31, 2007, compared to
$44,965,000 for the same period in 2006. Divisional operating income before
interest and taxes increased 59% to $9,403,000, compared to $5,932,000 in
2006. All three banners in the division, WirelessWave, Tbooth / la cabine T
and WIRELESS etc. had strong sustainable performances in the 4th quarter, as
the number of same-store mobile phones and other wireless devices sold
increased 9% in the 4th quarter for stores that were open throughout both 2007
and 2006.
    The Business Division sales of terrestrial radio systems, satellite
network services, and technical service and engineering increased 14%, to
$11,513,000 for the 4th quarter ended December 31, 2007, compared to
$10,097,000 for the same period in 2006. Divisional operating income before
interest and taxes improved to $983,000, compared to $913,000 in 2006. The
division's 4th quarter was highlighted by the delivery and implementation of a
number of previously announced radio and broadband solutions.
    Glentel had a very strong year of growth in 2007. Glentel's Retail
Division expanded its presence to 224 retail stores, which strengthened its
channels to market as a wireless solutions provider to consumers. The Business
Division concentrated on realigning its operations to strengthen its delivery
of wireless business solutions through its national network of branch
operations.
    Sales for the year ended December 31, 2007 increased 22% to $221,593,000,
compared to $181,188,000 the previous year. Operating income before interest
and taxes increased 86% to $17,297,000, compared to $9,289,000 in 2006. Net
income for the year was $10,577,000, $1.01 per share, compared to $6,324,000,
$0.62 per share, in 2006.
    Sales and net income grew as a result of organic growth and improved
performance in productivity. Retail Division sales grew 28% to $179,800,000 as
the division opened 56 new store locations of which 4 were WirelessWave; 11
were Tbooth/la cabine T; and 41 were WIRELESS etc. in Costco Wholesale Canada.
The number of same-store mobile phones and other wireless devices sold in the
year increased 11% over the previous year in stores that were open throughout
both 2007 and 2006.
    In 2007, Glentel announced it had signed a mobile phone license agreement
with Costco. The agreement provides Glentel a license to operate the wireless
category within Costco warehouses in Canada, providing to Costco members a
choice of mobile phones, related wireless devices, accessories, and
peripherals activated through Canadian mobile phone carriers authorized by
Glentel. The mobile phone stores operate under the banner WIRELESS etc.
    In the Business Division, sales grew 20% during 2007 to $41,793,000
compared to $34,950,000 in 2006. Growth in sales was primarily the result of
having a full year of operations of three acquisitions made in 2006, in
northern BC and Ontario. During the year, considerable time and energy was
spent combining and integrating the operations of these acquisitions into a
cohesive national organization.
    "We are pleased to report that management has been successful in
expanding and consolidating our business and retail operations in 2007," said
Thomas Skidmore, Glentel's president and chief executive officer. "Our Retail
Division has been very successful in increasing its breadth and depth in the
marketplace as Canada's largest multi-carrier wireless retailer."

    
    Financial highlights, in thousands of Canadian dollars (except percentage
     and per share data), are:

    -------------------------------------------------------------------------
                                    Three months ended       Year ended
                                       December 31           December 31
    -------------------------------------------------------------------------
                                      2007       2006       2007       2006
    -------------------------------------------------------------------------
    Sales                           $68,918    $55,061   $221,593   $181,188
    -------------------------------------------------------------------------
    Income, before interest, taxes
     and amortization                 9,772      5,880     23,400     13,952
    -------------------------------------------------------------------------
    Operating income, before
     interest and taxes               8,007      4,637     17,297      9,289
    -------------------------------------------------------------------------
    Net income                       $4,798     $3,246    $10,577     $6,324
    -------------------------------------------------------------------------
    Basic net income per share        $0.46      $0.32      $1.01      $0.62
    -------------------------------------------------------------------------
    Diluted net income per share      $0.46      $0.32      $0.98      $0.59
    -------------------------------------------------------------------------
    

    About Glentel:

    Glentel (TSX: GLN) is a leading provider of innovative and reliable
telecommunications services and solutions across Canada and in the United
States. Founded in 1963 and headquartered in Burnaby, B.C., Glentel comprises
two operating divisions - Retail and Business - that service thousands of
consumers and commercial telecommunications customers. Together with its
divisions, the company boasts more than 240 locations across Canada located in
retail malls, Costco Wholesale stores, and business centers. As the largest
multi-carrier mobile phone retailer in Canada, it offers a choice of network
carrier and wireless device or phone. To its business and government
customers, Glentel offers wireless engineering and service, rental equipment,
satellite and terrestrial network systems, tower sites, and wireless asset
monitoring. Glentel operates its business under the trading names Glentel
Wireless, WirelessWave, The Telephone Booth (Tbooth and la cabine T) and
WIRELESS etc.

    NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY
    HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

    To secure a copy of Glentel's annual report or for additional
    information, visit www.glentel.com or www.sedar.com.





For further information:

For further information: Investor Relations Contact: Dale B. Belsher,
Chief Financial Officer, Glentel, (604) 415-6500; Media Contacts: Kristin
Treat, VP, James Hoggan & Associates, (604) 761-9946 mobile,
ktreat@hoggan.com; Erin Gawne, Account Manager, James Hoggan & Associates,
(604) 765-2488 mobile, egawne@hoggan.com

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